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E-Bike Battery Cell Production To Start in Europe

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ASCHAFFENBURG, Germany – It’s to start by 2021 with cell production to expand step by step from approximately 13 Gigawatt. The federal German government is offering a subsidy. Total investment is expected to amount to 3 billion euro.

E-Bike Battery Cell Production To Start in Europe
Yesterday BMZ CEO Sven Bauer revealed plans for multi-billion euro costing ‘European Giga Cell Facility’ which Germany’s federal government is partly subsidizing. – Photo Bike Europe

BMZ CEO Sven Bauer announced the advanced plans for the construction of the battery cell producing facility yesterday at the Battery Experts Forum; the meeting point for the international battery world which is taking place from 14th to 16th March, 2017.

‘Strategic gap’ in battery cell supply

The reason for raising a battery cell producing facility in Germany is according to Sven Bauer in the fact that there’s a growing ‘strategic gap’. In particular when looking at the supply of cells of which companies like BMZ make complete batteries as used in for instance e-bikes and power tools. In the next years this strategic gap will manifest itself ever more firmly as demand for battery cells is exploding due to electric car makers like Tesla; because of the rapidly growing production of electric public transport busses as well as energy storage systems.

It’s expected that cell demand that currently stands at some 80 gigawatt will grow to 350 to 400 gigawatts over the next ten years. Cell manufacturers which are all located in Japan, Korea and China will increasingly be troubled by keeping up with demand. Companies like Tesla that already takes up 40% of Panasonic’s cell production will be prioritized. According to Sven Bauer this will lead to companies that, unlike BMZ that has long term contracts with Asian cell producers, will not get deliveries of the cells they ordered.

Company named DZP

At the Battery Experts Forum, which this trade journal visited, the plans for the cell producing facility were revealed. Plans that clearly show that they are already in a well advanced stage. A company called DZP which stands for ‘Deutsche Zell Produktion’ (German Cell Producer) will be formed by a consortium of companies that take a shareholding in the cell producing facility. The cell production facility has not be named yet. Conglomerate Thyssenkrupp will take part in DZP as well as Manz AG, M+M GmbH, BMZ Group and others.

European Giga factory

The initial planning of what Sven Bauer calls the ‘European Giga Cell Facility’ has started. This facility will have a total ground surface of 120,000m² of which 34,000m² is the production area. The giga cell facility will feature accredited test laboratories.

More on the European Giga Cell Facility will be in Bike Europe’s April edition that will also feature BMZ CEO Sven Bauer’s world market analysis and future visions.

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